Table 18-5The table shows the town of Driveaway’s demand sch…
Table 18-5The table shows the town of Driveaway’s demand schedule for gasoline. Assume the town’s gasoline seller(s) incurs a cost of $2 for each gallon sold, with no fixed cost. Quantity (Gallons) Price (Dollars per gallon) Total Revenue (Dollars) 0 8 0 50 7 350 100 6 600 150 5 750 200 4 800 250 3 750 300 2 600 350 1 350 400 0 0 Refer to Table 18-5. Suppose we observe that the price of a gallon of gasoline in Driveaway is $5; we observe as well that a particular seller’s profit is $150. Given this observation, which of the following scenarios is most likely?